JedMeister wrote:
> This is a good article about IT jobs going to India...same is happening here
> to some degree.
>
> http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=32789
>
>
And then you have companies like Dell taking some of the work back off
them I'm referring to the customer support of course where there
have been numerous complaints about not being able to understand
operators etc to such an extent that Dell has returned their Corporate
support to Texas.

I personally have done the Dell 'indian' experience and it was bloody awful.

I don't agree at all with the 'same is happening here comment' unless you
mean that US jobs are ending up here, this I do agree with.

NZ has a great lifestyle, lower costs than the US and is a great place to
export technology from.

There are also fewer cultural and language barriers for US companies.

Now if the government would just give some tax relief on R&D and lower
company tax, we could really take off. Lowering tax would generate *more*
revenue, although they seem blind to the fact. The country's tax rates are
set by a short sighted bean counter.

Ralph Mason allegedly said:
>
> "JedMeister" <> wrote in message
> news:rdlxb.11509$...
>> This is a good article about IT jobs going to India...same is happening
> here
>> to some degree.
>>
>> http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=32789
>>
>
> I don't agree at all with the 'same is happening here comment' unless you
> mean that US jobs are ending up here, this I do agree with.

The HP call centre in Auckland shut down and went to India just recently.
> NZ has a great lifestyle, lower costs than the US and is a great place to
> export technology from.
>
> There are also fewer cultural and language barriers for US companies.
>
> Now if the government would just give some tax relief on R&D and lower
> company tax, we could really take off. Lowering tax would generate *more*
> revenue, although they seem blind to the fact. The country's tax rates are
> set by a short sighted bean counter.

Ralph

The big multi-nationals don't pay any tax here anyway. They transfer it to
the HQ overseas as a "technology royalty" that they count as cost.

That's why companies like IBM and others appear to never make any
money....but never leave.

It's Kiwi companies who have to pay the tax. They can't transfer it
anywhere.

Frankly, the corporate tax regime does discriminate against Kiwi companies
in so far as it enables and allows the practice described above.

But lowering the tax rate won't change that. Instead there should be a
technology tax "credit" for comanies based here - to even things up.

Unfortunately, under WTO rules that would be a bit on the nose.....We aren't
supposed to discriminate between local companies who pay tax and foeign
companies that contrive to avoid it.

--
Best Regards,
Steve Withers
defenestrate: The act of throwing Windows out the window and replacing it on
your PC with some other operating system.

In article <MXvxb.10155$>,
says...
> The big multi-nationals don't pay any tax here anyway. They transfer it to
> the HQ overseas as a "technology royalty" that they count as cost.
>
> That's why companies like IBM and others appear to never make any
> money....but never leave.

On Fri, 28 Nov 2003 12:40:28 +1300, steve wrote:
>The big multi-nationals don't pay any tax here anyway. They transfer it to
>the HQ overseas as a "technology royalty" that they count as cost.
>
>That's why companies like IBM and others appear to never make any
>money....but never leave.

While foreign company's may be using "technology royalities" to reduce local
company tax they still have to pay GST and PAYE (on employee's pay) which are
important sources of tax revenue. While everyone bleats on about lower
corporate tax, some very successful company's operate in high tax
environments eg Nokia in Finland.

Edmund Good allegedly said:
> On Fri, 28 Nov 2003 12:40:28 +1300, steve wrote:
>
>>The big multi-nationals don't pay any tax here anyway. They transfer it to
>>the HQ overseas as a "technology royalty" that they count as cost.
>>
>>That's why companies like IBM and others appear to never make any
>>money....but never leave.
>
> While foreign company's may be using "technology royalities" to reduce
> local company tax they still have to pay GST

GST? They claim it back.
> and PAYE (on employee's pay)
> which are important sources of tax revenue.

The employee is paying that tax.
> While everyone bleats on about
> lower corporate tax, some very successful company's operate in high tax
> environments eg Nokia in Finland.

True. Lower taxes won't help.

--
Best Regards,
Steve Withers
defenestrate: The act of throwing Windows out the window and replacing it on
your PC with some other operating system.

In article <4CZxb.10393$>,
steve <> wrote:
> Edmund Good allegedly said:
>
> > While foreign company's may be using "technology royalities" to reduce
> > local company tax they still have to pay GST
>
> GST? They claim it back.

Not if they then re-sell them. They claim it back.
>>> and PAYE (on employee's pay)
>>> which are important sources of tax revenue.
>>
>>The employee is paying that tax.
>
> OK, to say it differently, "they employ (a lot of) people"

So would a Kiwi company that pays tax.

Try to keep the whole picture in view.

--
Best Regards,
Steve Withers
defenestrate: The act of throwing Windows out the window and replacing it on
your PC with some other operating system.

Makes an assumption that Kiwi company's would employ the same number of
people Also assumes Kiwi company's pay tax Do you know what percentage of the
tax take comes from corporates......................only 15% according to
the stats on the Treasury website. Most comes from PAYE, GST and other
consumption taxes (such a liquior excise, tobacco excise etc). The corporate
tax take is for all intents and purposes irrelevant.

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